Growing up Minnesotan and getting into debt

I grew up in a modest, Christian home with parents who were very conservative with their money. But in 2003, I found myself $40k in debt, with $20k from credit cards alone.

How did I get to that point with such a decent upbringing?

Before I answer that, allow me to start with a disclaimer:

I learned most of the things I want to share from life experiences and others who were successful with their money. I am not a financial professional, nor do I claim to be. So, please take that into consideration if you choose to heed any advice here.

I am hoping that by writing here I can help a few folks out. If I can cause someone to think or make a change for the better, great. I'm happy.

Money is a bit of a taboo subject to write or speak about in our "Minnesota-nice" culture. And, especially debt. When I was faced with my mountain of debt in '03, I felt like it was a near-impossible climb. I was basically job-less and had no savings. I lived in a cramped house with two other guys and was pretty proud of myself with being able to cough up the $300 rent every month.

So, back to the question: How did I ever get to a point where I was $40k in the hole? Unfortunately, I can't blame anyone but myself. Through some very unwise decisions (buying a car well above my means, spending like there was no tomorrow and taking out cash advances) I was able to amass quite the debt-load. It needed to stop. But it sure took awhile before I wised up. The stubborn-nature running through my genes - while useful in surviving Minnesota winters - didn't help much.

When I finally came around, here's what I did:

Realized I had a big problem. And, I needed help. (Apply all 12-step program laws right now, if you know 'em.)

Found cheaper room/board. Fortunately enough, I was living at my $300/month apartment when I came to.

Cut my expenses everywhere. This is where a budget comes in. If you don't have one at this point, it's a great time to start. You'll be surprised at how much money you spend and where it goes.

Stopped using the cards. I basically put them away so I couldn't see them anymore.

Found an accountability partner. I found a friend who also wanted to be debt-free and we went through the journey together. This is crucial in staying motivated.

Found other ways to make extra income. Fortunately for me, I was able to make some side money doing odd jobs as a designer while working a "full-time" temp job.

If you're facing a insurmountable mountain of debt right now, don't lose hope. You can be free of it if you start a plan today and stick to it.

Thanks for reading. I'd love to hear how you are getting out of debt or have already gotten out.

A.J. is a full-time graphic designer and wanna-be-out-of-debtor who shares money-saving ideas and tips on getting out of debt. In 2003, he found himself $40k in debt ($20k in credit cards alone) and rid himself of debt in five years. He and his friends have a website dedicated to personal finance and gaining financial independence at www.threethriftyguys.com. Read more about A.J. Shepherd.